Servers, Waitresses and Waiters Cannot be Forced to Share Tips with Cooks

     An appellate court approved the Department of Labor’s ability to regulate “tip pools” and “tip credits.”  The Court ruled that employers may not force employees to pool their tips with cooks and other typically non-tipped employees even when the employees were receiving at least minimum wages before tips.  The Court also confirmed the Department’s authority to regulate tip pools where a tip credit is not utilized and found that the Department’s formal rule that extended the tip pool restrictions of Section 203(m) to all employers, not just those who take a tip credit, “is consistent with the FLSA’s language, legislative history, and purpose.”  Oregon Rest. & Lodging Ass'n v. Perez, Nos. 13-35765, 14-15243, 2016 U.S. App. LEXIS 3119, at *25 (9th Cir. Feb. 23, 2016).

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